BCMM is located in the Eastern Cape Province and includes East London, Bhisho and King Williams Town, as well as the townships of Mdantsane and Zwelitsha within the corridor of rural areas. Following the local government elections held in August 2016, certain areas of the GreitKei, Amahlati and Ngqushwa municipalities were incorporated into BCMM. This covers approximately 2,515km2 with 68km of coastline. Economically, the motor industry plays an integral role, with East London well positioned for the exporting of vehicles.
Factors that could trigger a rating action include:
Positive change: Sustained growth in income generation from service provision, combined with improved debtors collections could lead to positive
ratings progression. Accelerated implementation of capex, without placing strain on gearing metrics, would also be positively considered.
Negative change: Persistent weakening in key operating and cash flow metrics would likely lead to a downgrade. In particular, further cash flow
pressures could see the BCMM’s strong liquidity position deteriorate.